Cairn India Ltd today said it has more than tripled its net
profit in September quarter to Rs 2,322.18 crore on the back of higher
production, and will consider its maiden dividend payout on October 31.
Net profit in July-September quarter last year stood at Rs
763.03 crore, a company statement said here. Cairn produced an average of
171,801 barrels per day (bpd) of crude oil from its prolific Rajasthan fields,
up from 125,251 bpd a year ago. This increased production helped offset USD 142
million or Rs 786 crore of foreign exchange loss due to rupee appreciation.
Cairn said revenue rose 68 per cent to Rs 4,443.1 crore.
Also, the company reported resolution of a dispute over laying of a 80-km pipeline from Salaya to
Bhogat in Gujarat. Completion of this section by first half of 2013 would
connect the Barmer oil fields to west coast, enabling more refineries to
receive Rajasthan crude.
Cairn transports 175,000 bpd of current output from
Rajasthan to refiners like Reliance Industries and Essar Oil in Gujarat through
a 590-km pipeline from Barmer to Salaya. The company said Mangala oilfield, the
largest among 25 oil and gas finds the firm has made in the Rajasthan block, is
producing at approved plateau of 150,000 bpd while Bhagyam, the second biggest
field, is producing 25,000 bpd.
This along with output from its other fields helped in
reducing India's import bill by USD 1.8 billion and contributed USD 0.8 billion
to national exchequer in taxes and levies, Cairn India CEO P Elango said.
"The quarter saw consistent production from our flagship Rajasthan asset.
The block continues to produce 175,000 bpd, which is more than 20 per cent of
India's domestic oil production," he said. "Work to enhance
production from the block continues to remain our focus."
Cairn has received all government approvals for its
corporate re-organization. "Implementation of this will help simplify and
consolidate the multi-layered structure of Cairn India comprising foreign
subsidiaries," Elango said. The company Board will meet on October 31 to
consider payment of interim dividend, the statement said. The company had a net
cash of Rs 12,442.7 crore as on September 30. Elango said the company had made
"good progress" with the government on its proposal to do further
exploration in the Rajasthan block.
The company is now making all pre-drilling preparations so
that it can start drilling the moment it gets the final nod. Also, the company
expects to begin production from Aishwariya field, the third largest in Rajasthan,
by end of 2012-13 fiscal. Initial production would be about 10,000 bpd.
Cairn said its shareholders had approved a restructuring of
the company and some of its wholly owned foreign subsidiaries (Cairn Energy
India Pty Ltd, Cairn Energy India West BV, Cairn Energy Cambay BV, and Cairn
Energy Gujarat BV). This was approved by the High Courts of Bombay and Madras
in 2010, subject to the receipt of other regulatory approvals which have been
received in October, 2012, Cairn said.
"Implementation of (this) scheme will ultimately help
in the consolidation of Indian businesses held by these foreign subsidiaries,
directly under Cairn India," it said. After oil, Cairn is now targeting
natural gas prospects in the Rajasthan block.
The firm, which had previously made a small gas discovery in
block, is hopeful of finding a big enough find that would generate surplus gas
that can be sold commercially after meeting fuel requirement of captive power
unit. Cairn realized USD 98.1 per barrel on crude sale in July-September
quarter, down from USD 102.8 per barrel in the same period a year ago.
The average USD-Rupee exchange rate for the quarter was Rs
55.15 versus Rs 54.1 for corresponding quarter of previous year. The closing
exchange rate as on September 30, 2012 was Rs 52.72.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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